Everything You Need to Know About Didi's Debacle
The company’s plunge after a hotly anticipated New York listing highlights the extent of Beijing's regulatory power. Our columnists weigh in on Chinese IPOs in the U.S., the dangers for investors, and the new reality for tech titans.
Still many holes to fill.
Photographer: Qilai Shen/BloombergDidi Global Inc.’s post-debut debacle highlights Beijing’s regulatory supremacy. Its shares got punished after the Cyberspace Administration of China launched a review of its data practices just two days after the company’s New York public offering.
The crisis got worse for Didi, and quickly spread to other U.S.-listed Chinese stocks. Its ride-hailing app was banned from app stores in China, and its corporate structure was thrust in the spotlight. Investors had been betting that the company had avoided the fate that befell Ant Group Co. last year, when the fintech affiliate of Alibaba Group Holding Ltd. had its Hong Kong initial public offering canceled after choice words by founder Jack Ma against China’s banking system.